Drunkenomics 101: Playing a Beer Market

Illustration: Alexander Blosyak

Usually, the only math required at a bar is tip calculation. But a new algorithm-based program from Miami company Drink Exchange makes ordering cocktails much like playing the stock market. If a particular concoction is popular, the software automatically raises its price. Conversely, the less popular a drink, the less it costs. Bar promotions (such as a sudden “market crash,” when all prices fall) affect prices minute to minute. Television screens and LED tickers display the prices so patrons can follow along—and throw elbows to get their orders in. The system is currently set up in 25 watering holes, and there are plans to be in 300 by year’s end. To help you dominate the market, program creator Todd Schram offers some tips for boozing wisely.

HOW TO BEAT THE SYSTEM

Look for patterns
Drink Exchange lets bar owners link drinks, so when the price of one goes up, the prices of others automatically fall. “If you stare at the screen long enough, you’ll start to see relationships,” Schram says. Insider trading tip: At D Street Bar and Grill in Encinitas, California, the Irish Car Bomb is linked to an undisclosed brand of beer.

Time the marketSchram says most bars open the market with a crash—drinks plummet to around half their original price for a limited time after boot up. If you can’t arrive early, try closing time: “The later in the night, the cheaper the prices,” Schram says. Remember, for every drink that spikes, several go down. At the end of the evening, up to 80 percent of the menu is steeply discounted.

Stick togetherPatrons can use a smartphone app to influence the market. Get enough people to vote for a crash and you’ll trigger one. Another option: Move to a city with a winning team. Schram says sports bar managers often crash the market when their team hits a home run.

Eavesdrop on your neighborsPay attention to what people around you are drinking. “If you hear a table order Patrón shots, you know that the price will go up,” Schram says, so you should switch to a different brand.

Be flexibleLearn to drink whatever’s on sale—no matter how badly you’re craving a beer. At D Street, the best deal that pops up is a $3 shot of silver tequila, which normally costs $8.50.

Try something newSchram is developing a system to help vendors test-market new products. The supplier can ask a bar to feature a new flavor of vodka, say, and set the price parameters very low. The software collects real-time data and documents what people are willing to pay. So if you want a deal, consider trying a lot of that chicken-infused vodka.